HTC Corp (宏達電), the world’s No. 5 smartphone brand, yesterday reported its first monthly revenue increase in five months, as customers rebuilt inventory.
HTC’s revenue expanded about 22 percent month-on-month to NT$20.29 billion (US$687 million), from NT$16.62 billion in January. However, it was down 26.82 percent from NT$32.11 billion during the same period last year.
Last month’s figure slightly exceeded the estimate of NT$20 billion by Jeff Pu (蒲得宇), who tracks the handset industry for Fubon Securities Co (富邦證券).
“HTC’s February revenue matches most analysts’ expectations,” Pu said.
“The slight recovery will be very brief. There will be a V-shaped rebound in March after HTC starts shipping its new HTC One series to customers, first in Europe and Asia, and then it will ship a 4G model of the series to US telecoms operator customer AT&T,” Pu said.
The introduction of the new smartphones would help lift HTC’s revenues next month to the NT$30 billion level, he said.
Pu said he expected HTC to make NT$68.5 billion in revenue this quarter. That compares with the company’s revenue forecast of NT$65 billion to NT$70 billion, which would be down by 31 percent to 36 percent sequentially from NT$101.42 billion.
HTC said it expected a slowdown in customer demand because of product transition, which would also lower its gross margin to 25 percent this quarter from 27.12 percent last quarter.
However, it would be a short-term phenomenon, HTC added.
The company’s’ gross margin “will return to normal levels” next quarter, HTC chief executive Winston Yung (容覺生) told an investors’ conference in Taipei on Feb. 6.
Pu retained his “buy” rating on HTC, with a target price of NT$750. HTC closed at NT$618 yesterday.
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